Keeping with its strategy to expand its footprints across different geographies, Equinix Inc. EQIX recently announced its plan to build a new International Business Exchange (IBX) in Amsterdam. The new IBX infrastructure, which will be known as AM4, will be developed at the company’s existing Amsterdam Science Park campus.
As per the plan, Equinix will invest $113 million in the first phase of development, which will facilitate the accommodation of 1,555 cabinets. This phase is anticipated to be completed in the second quarter of 2017.
This will be followed by the company initiating three more phases to increase the capacity to 4,200 cabinets. This will increase the total investment on AM4 project to $189 million.
In a separate announcement, the company reported that its customers can now avail Amazon.com Inc.’s AMZN Amazon Web Services (AWS) Direct Connect cloud service at its data centers. With this, the company’s metros offering the Direct Connect service has increased to 11.
As per Equinix, “With AWS Direct Connect, companies can connect their customer-owned and managed infrastructure directly to AWS, establishing a private connection to the cloud that can reduce costs, increase performance, and deliver a more consistent network experience.”
Expansions in important markets and consolidation of facilities in the existing ones have been part of Equinix’s core strategy. Citing predictions made by IDC, Equinix revealed that cloud computing will continue to grow at a solid pace across the European continent.
As per IDC, public cloud market in the EMEA region is likely to expand 26% over the next four years. It has also predicted that the private cloud market will witness 18% growth during the same time frame.
Given these predictions, the company’s recent decision to increase its capacity in Amsterdam seems like a step in the right direction.
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Equinix currently operates over 145 data centers across 40 countries, which it intends to increase to 150 by this year, per an expansion plan announced in March this year. Equinix intends to invest more than $4.5 billion for new data centers, expansion of colocation space and acquisitions.
The company strives to boost its revenue base and profitability through technological upgrades to attract more clients. Moreover, its recurring revenue model has provided the much needed support to its revenue stream over the years. The company’s cloud and IT service businesses are its fastest growing segments and account for approximately one-fourth of its total revenue.